As the governing body of lawyers in New Brunswick, the Law Society has established a Compensation Fund which may reimburse a client for a pecuniary loss as a result of the  dishonesty of their lawyer when their lawyer was acting as a barrister and solicitor in a solicitor-and-client relationship. This fund is provided through a fee paid by practising lawyers as part of their Law Society dues. Council of the Law Society, which manages the Law Society, has overall authority over the fund.

Please note that if the claimant did not have a formal client relationship with the lawyer, Council does not have the authority to compensate the claimant for their loss.

To make a claim to the Compensation Fund, an Application for Payment from the Compensation Fund must be filled out by the claimant. Whether a lawyer has been found guilty of a complaint or not, the Compensation Fund Committee cannot consider reimbursing the client unless an application to the fund has been received. In cases where an application has not been received but where the Registrar of Complaints has become aware of a client who may have a valid claim, the Registrar will normally forward an application form with instructions to the client.

Once completed, the application form must be filed with the Executive Director of the Law Society as soon as practicable, but no more than two years after the claimant became aware of the facts leading to the application.

When a claim is received, the Executive Director will refer the application to the Compensation Fund Committee. The committee may or may not hold a hearing while it considers the claim. When the committee has concluded its evaluation, it will forward a report to Council of the Law Society, and the claimant will also receive a copy. The report will either recommend that the claim be paid in part or in full or recommend that the claim be denied. The report will set out the committee’s reasons for its recommendation.

A claimant is not required to retain a lawyer to act on his or her behalf in making a claim to the fund. However, a lawyer may be helpful to the claimant in explaining the provisions of the Law Society Act, 1996 and the General Rules that apply to the fund, or may assist in assembling the information required to submit and/or support the application. The Law Society’s staff will also attempt to answer any questions.

Interest on the amount claimed is not normally paid.

Upon receipt of the Compensation Fund Committee’s recommendation, Council of the Law Society has the power to allow the claim in whole or in part and make a payment out of the fund to the former client. Council may also deny all or part of the claim. Payment of any amount is totally within the discretion of Council.

There may be circumstances in which a claimant’s money was improperly applied by the lawyer and lost, not as a result of dishonesty on the part of the lawyer but as a result of a mistake (or negligence). In such cases, contact the Professional Liability Reserve (Insurance Fund).

If you have other questions or concerns, you are invited to communicate with us by telephone for further explanation. Please remember that we cannot give you legal advice, and we are not permitted to give our opinion over the telephone.